SPARTA FOODS, INC. SIGNS LETTER OF INTENT TO ACQUIRE CRUZ DISTRIBUTING, INC.
SPARTA FOODS, INC. SIGNS LETTER OF INTENT
TO ACQUIRE CRUZ DISTRIBUTING, INC.
ST. PAUL, Minn., Nov. 15 /PRNewswire/ -- Nicholas G. Grammas, president of Sparta Foods, Inc., St. Paul, announced today that Sparta has entered into a letter of intent with Cruz Distributing, Inc., South St. Paul, Minn., whereby Cruz would be acquired by Sparta for an undisclosed amount of cash and shares of Sparta common stock. Cruz is primarily engaged in the distribution of refrigerated Mexican food products to retailers and food service establishments. Completion of the acquisition is subject to a number of conditions which must be met by both parties.
Grammas stated that Cruz's business would be an excellent complement to Sparta's existing product lines. Sparta is primarily in the business of manufacturing and marketing Mexican food products to retail, wholesale and food service accounts under the La Canasta brand name in the Upper Midwest and Canada. Grammas expressed his belief that the acquisition will strongly augment the dry grocery products of La Canasta with the refrigerated products that Cruz is successfully marketing. Sparta is a publicly held corporation and trades on the over-the-counter market in Minneapolis/St. Paul.
/CONTACT: Nicholas G. Grammas of Sparta Foods, 612-646-1888/ CO: Sparta Foods, Inc.; Cruz Distributing, Inc. ST: Minnesota IN: FOD SU: TNM JS -- MN012 -- 1700 11/15/91 16:21 EST